Question about the tax write off of the Leonard Fournette Jersey

You can take as a charitable deduction, before any other limitations, that amount which exceeds the FMV of the item.

Of course that's the big issue, isn't it? If it were me buying it, I'd get a qualified appraiser to look at it and sign off on it, so I could show that to the IRS if it was ever questioned.

College athletes due to the rules placed on them and the fact that they can't sell items given to them (including uniform items). That doesn't mean they don't have any real intrinsic value. At a minimum, there is value in the material, and, here's the big thing, now that the jersey is out of the player's hands, there would absolutely be value in the open market.

Since the player did not pay anything for the jersey, I would assume the default FMV is zero and it would be up to the IRS to challenge that?

I see what you are saying, I thought the NCAA argued in court that the jerseys and players had zero value. They even argued that networks were paying for contracts to broadcast the stadiums and not the players playing the game (yes, they seriously argued this in court.) I guess they never said anything about once it is out of the players hands it not being worth anything. but I was more interested in this potentially opening up a big issue with either proof that players names are worth something or nothing. And that the amount of a deduction on this item could come into play in future court cases.

just thought it was something interesting.

Might not be as interesting as you think. Tax court and civil court can disagree with each other in their opinions, it happens all the time.

I know exactly how charity auctions and tax deductions work. Problem I see here is you don't have any way to establish FMV other than the sale of the jersey right?

If you purchase a week at a beach condo for $101k then I agree you can take a deduction for the amount over FMV. FMV for the condo vacation should be easily to obtain.

However if I bought Tiger Stadium for $101k how much of a deduction would you take? I realize the last part is silly but this all revolves around FMV right?

LINK

I'd just use some online site of a "comparable" player. Obviously LF is better, that's not the point of the discussion.

Point is, Ingram was a hiesman winner and LF is a hiesman candidate. Both at big time SEC W schools.

In this case I'd think you could write off $100k pretty honestly.

I know this wasn't really the point of the thread, but why bicker with the IRS over $1000 of taxable income?

It is the responsibility of the charitable organization to inform the purchaser of the value of the jersey and helmets. The purchaser can rely on the information provided to him by the charity for reporting the amount of charitable contribution.

If the LSU athletic department was the seller, then they can use any historic information they have from prior sales of helmets and game jerseys to establish the FMV. The IRS could challenge the value assigned by the seller, but they take the consequences into consideration. Any challenge will be an argument to reduce the deduction claimed for a contribution to charity, not exactly a PR boon for the IRS. If the IRS is successful in establishing a higher value for the items the purchaser will get a smaller deduction, and not a significantly larger tax liability. Any increase in value provides basis in the jersey and helmets that will reduce any future gain from the sale of the items. Those gains would be taxed as gains from the sale of collectibles rather than as long-term capital gains. So from a practical point of view, it is unlikely the IRS is going to challenge the values assigned by the seller to the jersey and helmets.